Key News Asian markets were mixed overnight before today’s hawkish US Fed cut as South Korea outperformed, while Pakistan was down -3.41%, bringing its year-to-date return to +80%. Surprisingly, there is little commentary on whether the PBOC will cut rates as the Loan Prime Rate will be announced tomorrow, while the medium-term lending facility rate date hasn’t been released yet. The PBOC mimicking a Fed cut might limit currency depreciation versus the US dollar. An argument against the cut would be the action taken overnight by the PBOC to rein in speculation on China’s 10-year Treasury bond. The yield on…

At times like these, I’m reminded of a quote from Howard Marks, the most successful value investor you’ve likely never heard of. (Warren Buffett is a fan.) Marks’s monthly “Oaktree Memos” are well worth a read. And in his insightful book, The Most Important Thing: Uncommon Sense for the Thoughtful Investor, he wrote: “What’s clear to the broad consensus of investors is almost always wrong.” This quote has been on my mind lately because everyone is convinced that Trump 2.0 will lead to higher inflation. I’m sure you can see where I’m going: Higher inflation begets higher interest rates. And…

Key News Asian equities had another rough night on light volumes as South Korea, India, Thailand, Indonesia, and the Philippines posted losses of -1% or more. Mainland China and Hong Kong posted modest losses on light volumes despite some intra-day volatility and some good news going into the session. Mainland media continued emphasizing Premier Li and the post-Central Economic Work Conference (CEWC) economic policy support releases. A Mainland financial publication noted the rotation into consumer stocks from technology stocks by Mainland mutual fund portfolio managers after the recent pro-consumption economic policy statements. One asset manager commented their pivot was driven…

I recently had a friend who is young and fit get diagnosed with a serious heart condition. Since the condition is usually associated with advanced age and obesity, it was surprising to hear. However, with quick action and strict lifestyle changes, the condition is reversible. Chronic conditions like this account for 86% of medical costs nationwide, according to the National Institute of Health. Regular doctor’s visits can support with prevention and disease management before conditions become a significant medical and financial burden. Here is why visiting the doctor regularly saves you money. Budgeting For Predictable Costs The National Institute of…

The company is balancing geopolitical tensions with technological advancements By Oliver Rodzianko Summary L3Harris benefits from modernizing militaries and rising defense spending amid global tensions, yet moderate long-term CAGRs and a fair valuation suggest only moderate returns. AI-driven autonomous systems support growth even amid possible diplomatic easing; cost-saving and stable earnings prospects keep the company resilient over coming years. Valuation reflects balanced uncertainty: stable deterrent demand and cautious EV-to-EBITDA targets yield fair intrinsic value, suggesting reliable returns as peace or conflict evolves. L3Harris (LHX, Financial) is one of the key beneficiaries of the intense geopolitical environment, with wars breaking out…

The plugin electric vehicle (EV) business in the U.S. cruised into 2024 full of hype and hope. The hope was that a slowdown in EV growth that began in 2023 was just a hiccup in the otherwise inevitable boom cycle that many experts were predicting. The administration had set a goal of EVs making up to half of all new vehicle sales by 2030, and created tax breaks to make EVs competitive with internal combustion engine (ICE) vehicles. Enthusiastic policymakers assured us that it wouldn’t be long before gas guzzlers had been rendered practically obsolete. The year will end with…

The Consumer Price Index for December 2024, will be released on January 15 2025 giving insight into recent inflation trends. Current nowcasts suggest that inflation may come in at a 2.9% headline annual rate, marking an acceleration from November’s figures of 2.7% annual inflation. However, core inflation which removes food and energy is forecast to remain flat at 3.3% compared to November. Nowcast data is based on real time observed prices for December, and so these estimates will update over the remaining weeks of the month. Drifting Inflation Inflation drifting away from 2%, should that occur, may help confirm the…

It looks like 2024 will end with a big gain for investors in US stocks, with the S&P 500 up 28% year-to-date, even better than my (admittedly optimistic) expectations: I saw a roughly 15% gain for the S&P 500 going into the year. If this gain holds, 2024 will go down as one of the best years in the last 20, with only 2013 and 2019 doing (just slightly) better. However, unlike those years, the momentum isn’t coming mainly from tech, with the benchmark Technology Select Sector SPDR ETF (XLK) actually trailing the market, with a 24.5% return year-to-date, as…

The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. AbbVie presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most “interesting” ideas that merit further research by investors. Start slideshow: 10 Oversold Dividend Stocks » But making AbbVie an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of ABBV…

Financial planning is all about managing risk, and using mean reversion is a brilliant way to navigate your path to the best outcomes over time and not run out of money in retirement. We discuss this topic in depth with Scott Bondurant, founder of Bondurant Investment Advisory, based in Evanston, Ill. Larry Light: What is the concept of mean reversion, and why is it important in financial planning? Scott Bondurant: Mean reversion is a critical concept that assumes an asset’s price will eventually converge to its historical average over time. For example, if the stock market’s long-term return is 10%…